Member access

4-Traders Homepage  >  Shares  >  Nasdaq  >  CommVault Systems, Inc.    CVLT   US2041661024

Delayed Quote. Delayed Nasdaq - 07/22 04:00:03 pm
47.6 USD   -3.37%
3d ago COMMVAULT SYSTEMS : launches new consulting services
3d ago COMMVAULT SYSTEMS : Addresses Demand for Data Management Optimization with ..
4d ago COMMVAULT SYSTEMS : - Maintenance
SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 

CommVault Systems, Inc. : CommVault Announces Fourth Quarter and Fiscal 2012 Financial Results

05/08/2012 | 07:45am US/Eastern
Recommend:
0

OCEANPORT, N.J., May 8, 2012 /PRNewswire/ --

Fourth Quarter and Fiscal 2012 Highlights Include:

                               Fourth Quarter          Fiscal 2012
                               --------------          -----------
    GAAP Results:
    Revenues                           $114.0 million        $406.6 million
    Income from Operations
     (EBIT)                             $13.9 million         $49.3 million
    EBIT Margin                                  12.2%                 12.1%
    Diluted Earnings Per Share                  $0.21                 $0.68
    Cash Provided by
     Operations                         $30.1 million        $100.0 million

    Non-GAAP Results:
    Income from Operations
     (EBIT)                             $21.1 million         $73.7 million
    EBIT Margin                                  18.5%                 18.1%
    Diluted Earnings Per Share                  $0.29                 $1.01

CommVault [NASDAQ: CVLT] today announced its financial results for the fourth quarter and fiscal year ended March 31, 2012.

(Logo: http://photos.prnewswire.com/prnh/20110329/MM73841LOGO )

N. Robert Hammer, CommVault's chairman, president and CEO stated, "CommVault achieved excellent fourth quarter results. This was our seventh consecutive quarter of delivering record revenues and we continue to generate strong cash flows. Our fourth quarter was highlighted by continuing momentum in software revenues which increased 34% year-over-year and 14% sequentially. This growth in software revenue was driven by record enterprise software deals (transactions greater than $100,000) and strong demand across all geographies."

Hammer added, "Our fourth quarter results concluded a strong fiscal 2012 where we achieved substantial improvements in all aspect of our business. Our solid finish to fiscal 2012 reinforces the underlying strength of our business and we believe that we are entering fiscal 2013 with excellent momentum."

Total revenues for the fourth quarter of fiscal 2012 were $114.0 million, an increase of 27% over the fourth quarter of fiscal 2011 and an increase of 10% over the prior quarter. Software revenue in the fourth quarter of fiscal 2012 was $58.8 million, an increase of 34% year-over-year and 14% sequentially. Services revenue in the fourth quarter of fiscal 2012 was $55.3 million, an increase of 21% year-over-year and 6% sequentially.

For the full fiscal year, total revenues were $406.6 million, an increase of 29% over fiscal 2011. Software revenue for the full fiscal year was $201.8 million, an increase of 35% over fiscal 2011. Services revenue for the full fiscal year was $204.8 million, an increase of 24% over fiscal 2011.

Income from operations (EBIT) was $13.9 million for the fourth quarter, a 12% increase from $12.4 million in the same period of the prior year. Non-GAAP income from operations (EBIT) increased 22% to $21.1 million in the fourth quarter of fiscal 2012 compared to $17.4 million in the fourth quarter of the prior year. On a sequential basis, non-GAAP income from operations (EBIT) increased 8% in the fourth quarter of fiscal 2012.

Income from operations (EBIT) for the full fiscal year was $49.3 million, an increase of 38% over fiscal 2011. Non-GAAP income from operations (EBIT) increased 39% to $73.7 million in fiscal 2012 compared to $52.9 million in fiscal 2011.

For the fourth quarter of fiscal 2012, CommVault reported net income of $9.8 million, an increase of $5.0 million compared to the same period of the prior year. Non-GAAP net income for the quarter increased 18% to $13.7 million, or $0.29 per diluted share, from $11.6 million, or $0.25 per diluted share, in the same period of the prior year.

For the full fiscal year, CommVault reported net income of $31.9 million, an increase of $10.9 million compared to fiscal 2011. Non-GAAP net income for the full fiscal year increased 35% to $47.6 million, or $1.01 per diluted share, from $35.3 million, or $0.76 per diluted share, in fiscal 2011.

Operating cash flow totaled $30.1 million for the fourth quarter of fiscal 2012 compared to $19.0 million in the fourth quarter of fiscal 2011. For the full fiscal year, operating cash flow was $100.0 million, an increase of 91% compared to $52.4 million for fiscal 2011.

Total cash and short-term investments were $300.2 million as of March 31, 2012 compared to $218.3 million as of March 31, 2011. There were no share repurchases during the fourth quarter of fiscal 2012, which leaves $52.8 million remaining in the existing repurchase plan available through March 31, 2013.

A reconciliation of GAAP to non-GAAP results has been provided in Financial Statement Table IV included in this press release. An explanation of these measures is also included below under the heading "Use of Non-GAAP Financial Measures."

Recent Business Highlights:

    --  On April 23, 2012, CommVault announced an expanded collaboration with
        Microsoft Corp. to offer a cloud storage capability that combines the
        power of Simpana® software with the benefits and flexibility of storing
        data on the Windows Azure cloud platform.
    --  On April 12, 2012, CommVault announced the opening of a product
        development center in Bangalore, which significantly increases the
        company's existing presence in Hyderabad, India, and accelerates ongoing
        product development efforts worldwide.
    --  On Tuesday April 10, 2012, CommVault announced that The Info-Tech
        Research Group has named CommVault a "Champion" in both Enterprise
        Backup and Email Archiving in a pair of recent reports: Info-Tech
        Research Group's Enterprise Backup Software Vendor Landscape(1) and
        Info-Tech Research Group's Email Archiving Vendor Plus Landscape(2).
    --  On March 21, 2012, CommVault announced the results of the company's
        technical support survey in which CommVault achieved a 94% customer
        satisfaction rating.  This CommVault benchmark raises the bar for
        excellence in delivering technical support and services that top
        industry averages for customer satisfaction, loyalty and retention.

Use of Non-GAAP Financial Measures
CommVault has provided in this press release the following non-GAAP financial measures: non-GAAP income from operations, non-GAAP income from operations margin, non-GAAP net income and non-GAAP diluted earnings per share. This selected financial information has not been prepared in accordance with GAAP. CommVault uses these non-GAAP financial measures internally to understand, manage and evaluate its business and make operating decisions. In addition, CommVault believes these non-GAAP operating measures are useful to investors, when used as a supplement to GAAP financial measures, in evaluating CommVault's ongoing operational performance. CommVault believes that the use of these non-GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in CommVault's industry, many of which present similar non-GAAP financial measures to the investment community.

These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which are provided in Table IV included in this press release.

Non-GAAP income from operations and non-GAAP income from operations margin. These non-GAAP financial measures exclude noncash stock-based compensation charges and additional FICA and related payroll tax expense incurred by CommVault when employees exercise in the money stock options or vest in restricted stock awards. CommVault believes that these non-GAAP financial measures are useful metrics for management and investors because they compare CommVault's core operating results over multiple periods. When evaluating the performance of CommVault's operating results and developing short and long term plans, CommVault does not consider such expenses. Although noncash stock-based compensation and the additional FICA and related payroll tax expenses are necessary to attract and retain employees, CommVault places its primary emphasis on stockholder dilution as compared to the accounting charges related to such equity compensation plans. In addition, because of the varying available valuation methodologies, subjective assumptions such as volatility outside CommVault's control and the variety of awards that companies can issue, CommVault believes that providing non-GAAP financial measures that exclude noncash stock-based compensation expense and the additional FICA and related payroll tax expenses incurred on stock option exercises and vesting of restricted stock awards allow investors to make meaningful comparisons between CommVault's operating results and those of other companies.

There are a number of limitations related to the use of non-GAAP income from operations and non-GAAP income from operations margin. The most significant limitation is that these non-GAAP financial measures exclude certain operating costs, primarily related to noncash stock-based compensation, which is of a recurring nature. Noncash stock-based compensation has been, and will continue to be for the foreseeable future, a significant recurring expense in CommVault's operating results. In addition, noncash stock-based compensation is an important part of CommVault's employees' compensation and can have a significant impact on their performance. Lastly, the components CommVault excludes in its non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP financial measures.

CommVault's management generally compensates for limitations described above related to the use of non-GAAP financial measures by providing investors with a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure. Further, CommVault management uses non-GAAP financial measures only in addition to, and in conjunction with, results presented in accordance with GAAP.

Non-GAAP net income and non-GAAP diluted EPS. Non-GAAP net income excludes noncash stock-based compensation and the additional FICA and related payroll tax expenses incurred by CommVault when employees exercise in the money stock options or vest in restricted stock awards, which are discussed above, as well as applies a non-GAAP effective tax rate of 36% in fiscal 2012 and 34% in fiscal 2011.

CommVault anticipates that in any given quarter its non-GAAP tax rate may be either higher or lower than the GAAP tax rate as evidenced by historical fluctuations. The GAAP tax rate for the fourth quarter of fiscal 2012 was 30% and the GAAP tax rate for the fourth quarter of fiscal 2011 was 62%. On an annual basis, the GAAP tax rate over the past six fiscal years was 36% for fiscal 2012, 42% for fiscal 2011, 43% for fiscal 2010, 44% for fiscal 2009, 23% for fiscal 2008 and (241%) for fiscal 2007. In addition, CommVault's cash tax rate has been significantly lower than its GAAP tax rate in recent fiscal years. The cash tax rate for fiscal 2012 is estimated to be approximately 14% and the cash tax rate over the prior three fiscal years is estimated to be approximately 11% for fiscal 2011, approximately 10% for fiscal 2010 and approximately 13% for fiscal 2009. CommVault expects that its cash tax rate will remain lower than its GAAP tax rate through fiscal 2013 and into fiscal 2014. CommVault defines its cash tax rate as the total amount of cash income taxes payable for the fiscal year divided by consolidated GAAP pre-tax income.

CommVault measured itself to non-GAAP tax rates of 34% in fiscal 2011 and 36% in fiscal 2012 and anticipates that it will measure itself to a non-GAAP tax rate of 37% in fiscal 2013. CommVault believes that the use of a non-GAAP tax rate is a useful measure as it allows management and investors to compare its operating results on a more consistent basis over the multiple periods presented in its earnings release without the impact of significant variations in the tax rate as more fully described above. It is also more reflective of the increase in the cash tax rate as it approaches the GAAP tax rate over the next one to two fiscal years. Non-GAAP EPS is derived from non-GAAP net income divided by the weighted average shares outstanding on a fully diluted basis.

CommVault considers non-GAAP net income and non-GAAP diluted EPS useful metrics for CommVault management and its investors for the same basic reasons that CommVault uses non-GAAP income from operations and non-GAAP income from operations margin. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to CommVault's use of non-GAAP net income and non-GAAP EPS.

Conference Call Information
CommVault will host a conference call today, May 8, 2012, at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss its financial results. To access this call, dial 866-831-6234 (domestic) or 617-213-8854 (international). Investors can also access the webcast by visiting www.commvault.com. The live webcast and replay will be hosted under "Investor Events" located under the "Investor Relations" section of the website. An archived webcast of this conference call will also be available following the call.

About CommVault
A singular vision - a belief in a better way to address current and future data management needs - guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unprecedented control over data growth, costs and risk. CommVault's Simpana® software suite of products was designed to work together seamlessly from the ground up, sharing a single code and common function set, to deliver superlative Data Protection, Archive, Replication, Search and Resource Management capabilities. More companies every day join those who have discovered the unparalleled efficiency, performance, reliability, and control only CommVault can offer. Information about CommVault is available at www.commvault.com. CommVault's corporate headquarters is located in Oceanport, New Jersey in the United States.

Safe Harbor Statement
This press release contains forward-looking statements, including statements regarding financial projections, which are subject to risks and uncertainties, such as competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of software products and related services, general economic conditions and others. Statements regarding CommVault's beliefs, plans, expectations or intentions regarding the future are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from anticipated results. CommVault does not undertake to update its forward-looking statements.

©1999-2012 CommVault Systems, Inc. All rights reserved. CommVault, CommVault and logo, the "CV" logo, CommVault Systems, Solving Forward, SIM, Singular Information Management, Simpana, CommVault Galaxy, Unified Data Management, QiNetix, Quick Recovery, QR, CommNet, GridStor, Vault Tracker, InnerVault, Quick Snap, QSnap, SnapProtect, Recovery Director, CommServe, CommCell, ROMS, and CommValue are trademarks or registered trademarks of CommVault Systems, Inc. All other third party brands, products, service names, trademarks, or registered service marks are the property of and used to identify the products or services of their respective owners. All specifications are subject to change without notice.

(1) Info-Tech Research Group's Select Enterprise Backup Software Vendor Landscape, February 14, 2012.

(2)( )Info-Tech Research Group's Email Archiving Vendor Plus Landscape, January 11, 2012.

                                                                                                            Table I

                                                  CommVault Systems, Inc.
                                             Consolidated Statements of Income
                                           (In thousands, except per share data)
                                                        (Unaudited)

                                    Three Months Ended                            Year Ended
                                         March 31,                                March 31,
                                         ---------                                ---------
                                   2012                2011                  2012            2011
                                   ----                ----                  ----

    Revenues:
    Software                               $58,753                        $43,976                  $201,800         $149,798
    Services                                55,261                         45,645                   204,839          164,978
                                            ------                         ------                   -------          -------
    Total revenues                         114,014                         89,621                   406,639          314,776

    Cost of revenues:
    Software                                   696                            583                     2,747            2,369
    Services                                13,984                         11,241                    50,660           38,646
                                            ------                         ------                    ------           ------
    Total cost of revenues                  14,680                         11,824                    53,407           41,015
                                            ------                         ------                    ------           ------

    Gross margin                            99,334                         77,797                   353,232          273,761

    Operating expenses:
    Sales and marketing                     61,901                         44,792                   219,025          163,054
    Research and development                10,987                         10,099                    39,936           36,954
    General and administrative              11,452                          9,531                    40,619           34,207
    Depreciation and amortization            1,109                            989                     4,353            3,775
                                             -----                            ---                     -----            -----

    Income from operations                  13,885                         12,386                    49,299           35,771
    Interest expense                  -                             (26)                      (57)           (106)
    Interest income                            237                            215                       750              650
                                               ---                            ---                       ---              ---

    Income before income taxes              14,122                         12,575                    49,992           36,315
    Income tax expense                       4,280                          7,740                    18,052           15,311
                                             -----                          -----                    ------           ------

    Net income                              $9,842                         $4,835                   $31,940          $21,004
                                            ======                         ======                   =======          =======

    Net income per common share:
    Basic                                    $0.22                          $0.11                     $0.72            $0.49
                                             =====                          =====                     =====            =====
    Diluted                                  $0.21                          $0.10                     $0.68            $0.45
                                             =====                          =====                     =====            =====

    Weighted average common shares
     outstanding:
    Basic                                   44,413                         43,742                    44,089           43,283
                                            ======                         ======                    ======           ======
    Diluted                                 47,390                         46,766                    47,201           46,301
                                            ======                         ======                    ======           ======

                                                                             Table II
                                 CommVault Systems, Inc.
                          Condensed Consolidated Balance Sheets
                                      (In thousands)

                                            March 31,                 March 31,
                                                  2012                     2011
                                                  ----
                                           (unaudited)
    Assets
    Current assets:
    Cash and cash
     equivalents                                             $297,088                 $217,170
    Short-term investments                                      3,146                    1,150
    Trade accounts
     receivable, net                                           67,793                   73,891
    Prepaid expenses and
     other current assets                                      12,606                    8,476
    Deferred tax assets, net                                   14,717                   12,043
                                                               ------                   ------
    Total current assets                                      395,350                  312,730

    Deferred tax assets, net                                   23,861                   21,736
    Property and equipment,
     net                                                        8,184                    6,400
    Other assets                                                5,293                    1,633
    Total assets                                             $432,688                 $342,499
                                                             ========                 ========

    Liabilities and
     stockholders' equity
    Current liabilities:
    Accounts
     payable                                                   $1,847                   $1,658
    Accrued liabilities                                        45,888                   33,475
    Deferred revenue                                          125,314                   98,217
                                                              -------                   ------
    Total current
     liabilities                                              173,049                  133,350

    Deferred revenue, less
     current portion                                           22,059                   14,695
    Other liabilities                                           7,596                    6,324

    Total stockholders'
     equity                                                   229,984                  188,130
                                                              -------                  -------
    Total
     liabilities
     and
     stockholders'
     equity                                                  $432,688                 $342,499
                                                             ========                 ========

                                                                          Table III
                                   CommVault Systems, Inc.
                            Consolidated Statements of Cash Flows
                                        (In thousands)
                                         (Unaudited)
                                                          Year Ended
                                                          March 31,
                                                          ---------
                                                    2012             2011
                                                    ----

    Cash flows from operating
     activities
    Net income                                              $31,940                  $21,004
    Adjustments to reconcile net
     income to net cash provided
     by operating activities:
    Depreciation and
     amortization                                             4,484                    3,906
    Noncash stock-based
     compensation                                            21,426                   15,623
    Excess tax benefits from
     stock-based compensation                               (16,009)                  (7,044)
    Deferred income taxes                                    (4,993)                   7,798

    Changes in operating assets
     and liabilities:
    Trade accounts receivable                                 5,419                  (14,206)
    Prepaid expenses and other
     current assets                                          (4,198)                  (3,756)
    Other assets                                             (3,720)                    (314)
    Accounts payable                                            204                     (261)
    Accrued liabilities                                      29,038                   13,469
    Deferred revenue                                         35,599                   17,892
    Other liabilities                                           810                   (1,701)
                                                                ---                   ------
    Net cash provided by
     operating activities                                   100,000                   52,410

    Cash flows from investing
     activities
    Purchase of short-term
     investments                                             (3,146)                  (2,751)
    Proceeds from maturity of
     short-term investments                                   1,150                    6,644
    Purchase of property and
     equipment                                               (5,796)                  (3,865)
                                                             ------                   ------
    Net cash (used in) provided
     by investing activities                                 (7,792)                      28

    Cash flows from financing
     activities
    Repurchase of common stock                              (45,639)                 (31,506)
    Proceeds from the exercise
     of stock options                                        18,123                   17,158
    Excess tax benefits from
     stock-based compensation                                16,009                    7,044
                                                             ------                    -----
    Net cash used in financing
     activities                                             (11,507)                  (7,304)

    Effects of exchange rate -
     changes in cash                                           (783)                   2,518
                                                               ----                    -----

    Net increase in cash and
     cash equivalents                                        79,918                   47,652
    Cash and cash equivalents at
     beginning of period                                    217,170                  169,518
                                                            -------                  -------

    Cash and cash
     equivalents at
     end of period                                         $297,088                 $217,170
                                                           ========                 ========

                                                                                                                              Table IV
                                                                 CommVault Systems, Inc.
                                                  Reconciliation of GAAP to Non-GAAP Financial Measures
                                                          (In thousands, except per share data)
                                                                       (Unaudited)

                                                                                                     Year Ended
                                                    Three Months Ended                               March 31,
                                                         March 31,
                                                         ---------
                                                   2012               2011                  2012                2011
                                                   ----               ----                  ----

    Non-GAAP financial measures and
     reconciliation:
    GAAP income from operations                           $13,885                        $12,386                     $49,299           $35,771
    Noncash stock-based compensation (1)                    6,382                          4,475                      21,426            15,623
    FICA and related payroll tax expense
     on stock option                                          866                            500                       2,964             1,494
             exercises and vesting on restricted
              stock awards (2)

    Non-GAAP income from
     operations                                           $21,133                        $17,361                     $73,689           $52,888
                                                          =======                        =======                     =======           =======

    GAAP net income                                        $9,842                         $4,835                     $31,940           $21,004
    Noncash stock-based compensation (1)                    6,382                          4,475                      21,426            15,623
    FICA and related payroll tax expense
     on stock option                                          866                            500                       2,964             1,494
              exercises and vesting on restricted
               stock awards (2)
    Non-GAAP provision for income taxes
     adjustment (3)                                        (3,414)                         1,774                      (8,726)           (2,855)
                                                           ------                          -----                      ------            ------
    Non-GAAP net income                                   $13,676                        $11,584                     $47,604           $35,266
                                                          =======                        =======                     =======           =======

    Diluted weighted average shares
     outstanding                                           47,390                         46,766                      47,201            46,301
                                                           ======                         ======                      ======            ======

    Non-GAAP diluted net
     income per share                                       $0.29                          $0.25                       $1.01             $0.76
                                                            =====                          =====                       =====             =====

Footnotes - Adjustments

(1) Represents noncash stock-based compensation charges associated with stock options and restricted stock units granted as follows:

                    Three Months Ended         Year Ended
                         March 31,              March 31,
                         ---------              ---------
                                  2012        2011          2012 2011
                                  ----        ----          ---- ----

     Cost
     of
     services
     revenue                             $313                $71         $648    $346
     Sales
     and
     marketing                          2,692              1,999        9,818   7,040
     Research
     and
     development                          709                497        2,270   1,719
     General
     and
     administrative                     2,668              1,908        8,690   6,518
                                        -----              -----        -----   -----
     Stock-
     based
     compensation
     expense                           $6,382             $4,475      $21,426 $15,623
                                       ======             ======      ======= =======

(2) Represents additional FICA and related payroll tax expenses incurred by CommVault when employees exercise in the money stock options or vest in restricted stock awards.

(3) The provision for income taxes is adjusted to reflect CommVault's estimated non-GAAP effective tax rate of approximately 36% in fiscal 2012 and 34% in fiscal 2011.

SOURCE CommVault

Recommend :
0
React to this article
Latest news on COMMVAULT SYSTEMS, INC.
3d ago COMMVAULT SYSTEMS : launches new consulting services
3d ago COMMVAULT SYSTEMS : Addresses Demand for Data Management Optimization with New C..
4d ago COMMVAULT SYSTEMS : - Maintenance
5d ago COMMVAULT SYSTEMS : Assigned Patent
6d ago COMMVAULT SYSTEMS : After Hours: David McCay
6d ago COMMVAULT SYSTEMS : Amendment to Combined Synopsis/Solicitation - 70-- CommVault..
6d ago COMMVAULT SYSTEMS : : To Webcast Annual Meeting
6d ago COMMVAULT SYSTEMS : Confirmed as Platinum Sponsor of SharePoint Fest - Denver 20..
7d ago COMMVAULT SYSTEMS : addresses demand for data management optimisation with new c..
07/15 COMMVAULT SYSTEMS : : Addresses Demand for Data Management Optimization with New..
Dynamic quotes  
ON
| OFF